The Labour Party and the Chamber of Commerce and Enterprise yesterday disagreed over the removal of public holidays falling on weekends.
While Chamber president Tancred Tabone said the measure had improved productivity, Labour leader Alfred Sant said the party disagreed and had proof that the move did not have any effect on competitiveness.
During a meeting between the two sides, Dr Sant said a Labour government will re-introduce the arrangement whereby public holidays falling on weekends will be added to employees' leave entitlement.
Mr Tabone spoke on Malta's membership of the European Union and entry into the eurozone, which the Chamber had always supported. The Chamber, he said, was satisfied that the MLP was committed to exploiting Malta's EU membership for the country's maximum benefit. The Chamber wanted the next legislature to focus on ensuring long-term macro economic stability, an improvement to national competitiveness and a better quality of life for the Maltese.
Mr Tabone said the Chamber sought a discussion between the social parties on how the taxation system could be made more effective. It also insisted on the need to continuously refine income tax bands in order to continue increasing purchasing power.
The Chamber, he added, expected the new Administration to take difficult but necessary decisions on subsidies and social services. It would also like rebates for people opting for private retirement and health schemes.
More initiatives in education and training should be taken, especially for particular sectors of unemployed people. Many employers were not finding enough qualified workers, resulting in high wages that were not directly linked to productivity.
The Chamber wanted more initiatives aimed at reducing bureaucracy and the creation of a level playing field. It proposed that the government should request EU assistance so that a waste collection scheme to be undertaken by industry could be extended and to encourage the use of alternative energy.
Dr Sant said Labour agreed with the Chamber on the need to prioritise on economic growth. Countries that joined the European Union at the same time as Malta were getting double Malta's growth. Labour would see that there would be growth in Malta while adhering to the Maastricht criteria to ensure financial discipline.
Macro economic stability should not depend on an increase in taxes. Malta had the highest tax rate increase in the EU in the past years and this weakened competitiveness.
Dr Sant said he did not believe wage costs in Malta were a burden that was undermining competitiveness. Compared to other EU countries, the burden of wage costs in Malta had dropped and, according to government statistics, the gross income increase per employee was lower than the increase in pensions.
The cost of living on food, medicines, educational services and clothes was also going up at much higher rates than in other countries. It was true that there were international causes but these affected every country and not just Malta. The fact that the increase here was at much higher rates showed that inflation was being created in Malta.
Dr Sant referred to Labour's proposal on tax-free overtime and said this was a system that was working very well in France. He also referred to the forthcoming merger between the Chamber and the Federation of Industry saying this was a positive development.